By Kalypso Kanellopoulou
After the latest developments, many local gas station owners express their fear that fuel prices will reach those of the summer of 2022. The reason, of course, is none other than the recent geopolitical developments and Iran’s attack on Israel and the retaliation. Given the establishment of a new global economic map, the arsenal of Baghdad may pose economic “dangers” for Greek consumers as well. And all this while already, as the owners of gas stations in the country say to “Neologos”, the prices have increased considerably in the first four months of 2024.
Memories of 2022
When Putin ordered a Russian invasion of Ukraine, it was too late to prevent the “evil”. It overturned everything in the global economy and brought price hikes to every product, including fuel. The majority of gas station owners in Patras fear that this may happen again this year. Among them is the president of the Greek Petrol Dealers’ Federation (OBE), Michalis Kiousis. Let’s remember that, in 2022, two and a half weeks after the invasion, the rise in fuel prices ranged from 11.5% to 27.4% both in Greece and in the Eurozone. The war began on February 24, 2022, with the price of unleaded in our country three days before reaching €1,884 per liter and of diesel at €1,621. As of March 14, 2022, the prices had shot up to €2,110 and €1,997, respectively.
So even though, as they themselves point out in “Neologos”, there has not yet been any noticeable rise in prices, a few days after the attack by Iran, they are on constant “vigilance”, because everything is reversible. Among the “positives” of Achaia is that gasoline prices do not touch those of the islands, where the situation is even worse.
It can exceed €2
By the time these lines are being written (Thursday noon), in Patras the average price of gasoline was €1,954. The lowest price is at €1,895 and the highest at €2,029. “At this stage, the latest geopolitical events seem not to have particularly affected fuel prices. This can change from day to day. After all, since the beginning of the year we have already had a very noticeable increase, of the order of approximately 0.20 cents per liter,” explains Mr. Kyousis to “Neologos of Patras”.
However, we remind you that, in 2022, until the end of August, i.e. six months after the start of the war, the prices at the pumps were “galloping”. In Greece, the average price of unleaded fuel never fell below €2 per liter, always based on EU data. Especially for Patras, in almost all gas stations, it exceeded €2.10 per liter. Then, the “peak” of accuracy was in the “heart” of June – a fact that makes local insiders to be on guard and not complacent for the coming months.
Traveling by car is a kind of luxury for many residents of Patrina
It is a fact that in Greece and, therefore, in Patras, fuel is sold as “gold”. The highest prices prevail in Europe, together with Finland and Denmark, where of course workers’ wages are correspondingly much higher and their earnings different. This is due to the fact that in Greece they are charged with Excise Tax (Excise Tax) as well as value added tax. And while everything looked like spirits had “fallen” and the summer of 2024 would enter with optimism about fuel prices, Iran decided to upset our expectations. However, the owner of the gas station chain, Mr. Kolokythas, estimates that so far the war has not brought about an increase in prices, without this being reassuring. Every day, there can be fluctuations, corresponding to the various waves that the world economic map goes through.
The fuel pass
The tactic of windfall subsidies has been applied many times by the Greek government, which is looking for ways to control rising prices. As far as fuel is concerned, the corresponding fuel pass was foreseen to protect consumers from the previous rapid increases in fuel prices. But now, this measure, which in the previous energy crisis significantly helped the family budget (along with the heating allowance), has been put on ice.
The optimistic and the pessimistic scenario
Experts estimate that the average price of gasoline, due to the Iran-Israel war, is expected to reach 2 euros. The most optimistic scenario will be for prices to remain stable, at the already high levels. However, the gas station owners consider May as a milestone date. “Increase due to the current developments, if we see it, we will see it in May”, they emphasize.
Published in the newspaper Neologos*
